‘Working on minimising the impact’: Harsh Vardhan Shringla as Trump’s 50% tariffs come into effect

Former Foreign Secretary and Rajya Sabha MP Harsh Vardhan Shringla, speaking at an event in Virginia, said India is working on minimising the impact of the 50 per cent tariff, imposed by Donald Trump. He said India is looking to access diverse markets, and to divert its exports.

"From midnight tonight, we will be at the receiving end of 50 per cent customs duties for goods exported into the United States from India. This would mainly impact labour-intensive products including agriculture and seafood. We are working on minimising the impact. One way is to find alternative markets. We have Free Trade Agreements with Australia, the UAE, and the UK, we are close to concluding a Free Trade Agreement with the European Union. This means that we can access different markets and we would have the opportunity to divert some of our exports in that direction,” he said.

Despite the tariffs, Shringla sounded optimistic about India-US ties. “We have the most comprehensive, multi-faceted relationship with the United States, the one that we have more than any other country,” despite the apparent chill in the relationship between New Delhi and Washington. He also welcomed the appointment of Sergio Gor as the Ambassador of India, and called it a positive step.

The ex-Secretary also said, "Hopefully, we will find a way to conclude a satisfactory mutually beneficial Free Trade Agreement with the United States early rather than late.” He said that President Donald Trump and Prime Minister Narendra Modi enjoy a very close and special relationship. “That connection doesn't come from today. It comes from President Trump's first term in office when you had events like Howdy Modi and Namaste Trump,” he said.

Shringla’s statements come as Trump’s 50 per cent – the highest – tariffs on India comes into effect. The duties will impact nearly two-third of India’s goods trade. Sectors like textiles and apparel, gems, diamonds and jewellery, machinery and appliances, agriculture and processed foods, metals, organic chemicals, shrimp and seafood, and handicrafts, carpets, leather and furniture are expected to be most impacted.

Production has reportedly been impacted in hubs like Tiruppur, Noida, Surat, Visakhapatnam, and Jodhpur.